What Is Floor Pricing in Programmatic Advertising? Floor pricing is the minimum amount a publisher is willing to accept for serving an ad impression. Think of it like a reserve price in an auction—bidders can’t win unless they meet or exceed it. In the world of programmatic advertising, floor pricing isn’t just a technical setting—it’s a revenue lever. Done right, it increases your CPMs. Done wrong, it drives away buyers and causes unsold inventory. Hard Floor vs Soft Floor There are two types of floor pricing strategies publishers often use: 1. Hard Floor This is non-negotiable. If a bid doesn’t meet the minimum, it’s rejected—no exceptions. It ensures you never sell below a set price but risks leaving impressions unsold. 2. Soft Floor This allows some flexibility. If the highest bid doesn’t reach the floor, you may still accept it under certain conditions, such as limited competition or fill needs. It’s more forgiving but can lead to lower average CPM. How Floor Pricin...
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